WorksheetsBusiness: the influence of Government
Total questions: 15
Worksheet time: 7mins
A business that is operated by the government is called a ......
PLC
Limited company
Public corporation
Sole trader
Which of the following services is often provided by the government?
Mobile data
Education
Fast food
Holidays
Which countries usually spend the most on public services?
Developing countries
Emerging countries
Developed countries
Which TWO the following are direct taxes?
Income tax
VAT
Tax on fuel
Corporation tax [tax on company profits]
Why do businesses usually prefer low rates of corporation tax?
They make more profit before tax
They make more profit after tax
If the government increases VAT on goods, will most businesses increase their prices?
Yes
No
Give a reason why businesses may prefer taxes on incomes to be low
They do not have to pay them
Low income tax means less money spent on services
Customers will then have more money to spend
What is the name of the government's policy on taxation and spending?
Welfare policy
Monetary policy
Fiscal policy
Multinational companies are more likely to locate production in countries with..
Low taxes
High taxes
Governments set interest rates. Give TWO reasons why this is important for businesses
The interest rate affects the currency's exchange rate
Businesses dislike taxes
Businesses often dislike high government spending
Businesses often borrow money to pay for investment
Which TWO of the following are types of laws that are directly aimed at businesses?
Laws to prevent violent crime
Laws to reduce industrial pollution
Laws that require fair treatment for workers
Laws to control traffic
What is a monopoly?
A board game
A market which is very competitive
A market which is mostly controlled by one business
Identify TWO ways in which a cut in government spending can be BAD for businesses
Many consumers may have less money to spend
The government may give fewer contracts to businesses to build roads
Taxation may go down as well
Government regulation may be reduced
How might a business benefit if the government takes the country into a trading bloc?
It may be more difficult to sell to customers outside the bloc
It may have to deal with more competition from other businesses
Easier to sell to customers in other countries
Which of the following businesses may benefit from protectionism?
A business that faces tough competition from businesses in other countries
A business that sells a lot of imported goods
A business that likes to sell lots of products to customers in other countries
